Mega Trend: US Economically Sensitive Sectors

As promised, here is the first in a series of Mega Trend updates from an economic sector perspective. We start off with 3 sectors that are generally considered the most economically sensitive: Consumer Discretionary (XLY), Industrials (XLI) and Info Tech (IYW).

As the charts below show, all 3 are Mega Trend bullish. Signs of market topping action is evident (sideways churning) but no trend reversal calls (from bull to bear) can be made at this time. Concerns for either an economic or earnings recession are not evident in these sectors' Mega Trend behavior. It is worth noting, however, Industrials (XLI) are most vulnerable and may tip into bear trend territory soon enough.

Next up: defensive issues.
 

Disclosure: Accounts managed by Blue Marble Research may presently hold a long/short position in the above mentioned issues and their inverse comparables.

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